United States Department of Agriculture Office of the Chief Financial Officer National Finance Center Government Employees Services Division Functional Requirements Document (FRD) Project# 39546 Project Title: W-4 Employee Withholding Certificate Date Prepared: 09/26/2019 Version: 11 February 2015 Page 1 of 27 Version 1.0 As of: Changes to this document are not allowed. If you do not concur with the requirements outlined in the FRD, please provide details to your Customer Service Representative. Scope: The way employers will figure federal income tax withholding for 2020 Form W- 4, Employee’s Withholding Certificate, is changing to match the changes to the new form. The 2020 Form W-4 has been redesigned to reduce the form’s complexity and to increase transparency and accuracy in the withholding system. Beginning with the 2020 Form W-4, employees will no longer be able to request adjustments to their withholding using withholding allowances. Instead, using the new Form W-4, employees will provide employers with amounts to increase or reduce taxes and amounts to increase or decrease the amount of wage income subjectt to income tax withholding. Assumptio ns: Customer bulletin will be sent out to Agencies notifying them of changes. CAPPS notification will be sent out to the CAPPS community NFC will delete Forms W-4 with effective dates after PP26, 2019 from the suspense file and future file; and employees will be required to submit the new W-4 form. Employees who have no changes will default to the current form W-4 on file. The new W-4 fields will be stored on the SALARY record in field NFC-ASD-SAL- USE starting in position 37. PESB will create a sweep to initialize all SALARY records, initializing the new fields as defined below. This one-time sweep will need to run in CUAT (IDMS60) on a regular schedule as well as across all production CV’s. Field Name SALARY record NFC-ASD-SAL-USE reference Initialization Value W-4-FLAG NFC-ASD-SAL-USE OF SALARY(37:1) N MULTI-JOBS-SPOUSE-WRK NFC-ASD-SAL-USE OF SALARY(38:1) SPACE TOT-AMT-CLM-DEPENDENTS NFC-ASD-SAL-USE OF SALARY(39:8) ZEROES OTHER-INCOME NFC-ASD-SAL-USE OF SALARY(47:9) ZEROES DED-REDUCE-TAX-WHLD NFC-ASD-SAL-USE OF SALARY(56:8) ZEROES All new accessions will need to have the SALARY record in field NFC-ASD-SAL- USE starting in position 37 initialized as defined below. (PINE16)
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United States Department of Agriculture Office of the ...€¦ · followed by a 2 byte filing status. The new 2 byte filing status will be stored in TMGT Table 025_AD-350 (PERSONNEL
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United States Department of Agriculture
Office of the Chief Financial Officer
National Finance Center
Government Employees Services Division
Functional Requirements Document (FRD)
Project#
39546
Project Title:
W-4 Employee Withholding Certificate
Date Prepared:
09/26/2019
Version: 11 February 2015 Page 1 of 27
Version 1.0 As of:
Changes to this document are not allowed. If you do not concur with the requirements
outlined in the FRD, please provide details to your Customer Service Representative.
Scope:
The way employers will figure federal income tax withholding for 2020 Form W-
4, Employee’s Withholding Certificate, is changing to match the changes to
the new form. The 2020 Form W-4 has been redesigned to reduce the form’s
complexity and to increase transparency and accuracy in the withholding
system. Beginning with the 2020 Form W-4, employees will no longer be able to
request adjustments to their withholding using withholding allowances.
Instead, using the new Form W-4, employees will provide employers with
amounts to increase or reduce taxes and amounts to increase or decrease the
amount of wage income subjectt to income tax withholding.
Assumptio
ns: Customer bulletin will be sent out to Agencies notifying them of changes.
CAPPS notification will be sent out to the CAPPS community
NFC will delete Forms W-4 with effective dates after PP26, 2019 from the
suspense file and future file; and employees will be required to submit the
new W-4 form. Employees who have no changes will default to the current form
W-4 on file.
The new W-4 fields will be stored on the SALARY record in field NFC-ASD-SAL-
USE starting in position 37. PESB will create a sweep to initialize all SALARY
records, initializing the new fields as defined below. This one-time sweep will
need to run in CUAT (IDMS60) on a regular schedule as well as across all
production CV’s.
Field Name SALARY record NFC-ASD-SAL-USE reference Initialization Value
W-4-FLAG NFC-ASD-SAL-USE OF SALARY(37:1) N
MULTI-JOBS-SPOUSE-WRK NFC-ASD-SAL-USE OF SALARY(38:1) SPACE
TOT-AMT-CLM-DEPENDENTS NFC-ASD-SAL-USE OF SALARY(39:8) ZEROES
OTHER-INCOME NFC-ASD-SAL-USE OF SALARY(47:9) ZEROES
DED-REDUCE-TAX-WHLD NFC-ASD-SAL-USE OF SALARY(56:8) ZEROES
All new accessions will need to have the SALARY record in field NFC-ASD-SAL-
USE starting in position 37 initialized as defined below. (PINE16)
Functional Requirements Document (FRD)
Project#
39546
Project Title:
W-4 Employee Withholding Certificate
Date Prepared:
09/26/2019
Version: 11 February 2015 Page 2 of 27
Field Name SALARY record NFC-ASD-SAL-USE reference Initialization Value
W-4-FLAG NFC-ASD-SAL-USE OF SALARY(37:1) N
MULTI-JOBS-SPOUSE-WRK NFC-ASD-SAL-USE OF SALARY(38:1) SPACE
TOT-AMT-CLM-DEPENDENTS NFC-ASD-SAL-USE OF SALARY(39:8) ZEROES
OTHER-INCOME NFC-ASD-SAL-USE OF SALARY(47:9) ZEROES
DED-REDUCE-TAX-WHLD NFC-ASD-SAL-USE OF SALARY(56:8) ZEROES
W-4-FLAG (NFC-ASD-SAL-USE OF SALARY (37:1)) will be set to Y when Document 130
(Federal Income Tax Certificate) is successfully applied. This is true for both
new W-4’s and updates to existing W-4’s. (PEPL18)
TMGT table 47 (PINE EDIT ERROR MESSAGES AND CODES) will be updated with the 6
new error messages to edit the 4 new fields. Error code “055” will be modified
to state “W-4 is Controlled by the IRS No Updates Allowed”. These will be used
in the PINE edit error processes.
TBL Doc ErrC
de Desc
047 130 056 MULTI JOB OR SPOUSE WORKS MUST EQUAL Y OR
N
047 130 057 TOTAL CLAIM DEPENDENTS MUST BE NUMERIC OR
SPACES
047 130 058 OTHER INCOME AMOUNT MUST BE NUMERIC OR
SPACES
047 130 059 DEDUCTS REDUCE TAX W-H MUST BE NUMERIC OR
SPACES
047 130 060 TOTAL CLAIM DEPENDENTS AMOUNT MUST BE
ROUNDED
047
130
061
CITIZENSHIP CODE MUST BE 8 FOR THIS FILING
STATUS
TMGT table 48 (PINE DOCUMENTS ELEMENT NAMES) will be updated with the 4 new
data elements to be used in the applicable application edit error processes.
TBL Doc ErrCde Desc
048 130 026 MULTI-JOBS-SPOUSE-WRK
048 130 027 TOT-AMT-CLM-DEPENDENTS
048 130 028 OTHER-INCOME
048 130 029 DED-REDUCE-TAX-WHLD
FED-TAX-NO-EXEMPTIONS of Salary (PIC X(3)) will no longer store the filing
status (M or S) plus a 2 byte numeric field representing the number of
exemptions (ie M02). Instead, only the filing status will be stored. The length
of the field will remain the same but the first position will be a space
followed by a 2 byte filing status. The new 2 byte filing status will be stored
in TMGT Table 025_AD-350 (PERSONNEL BLOCK AND DESCRIPTION) where AD-350-BLOCK-
NUMBER = 910. All applicable applications should validate the new 2 byte filing
status against this table.
Functional Requirements Document (FRD)
Project#
39546
Project Title:
W-4 Employee Withholding Certificate
Date Prepared:
09/26/2019
Version: 11 February 2015 Page 3 of 27
MAD Developers will send NFC-1043 Data Dictionary Record Modification Request
and NFC-1045 Data Dictionary Element Request to Database (DBMB) to add new
field.
It has been confirmed with the tax processing experts that the employees
claiming exempt will still be reset to S00 annually in PP04. No changes are
needed to BEAR10, this program resets employee exemptions on the database to
S000 if they are currently “X” or “0NL” or “0XT” or “XT” during pay period
04.
It has been confirmed by the MAD development staff that for those States that
use the Federal exemptions and have no state form no change will be needed to
the current process based on the new 2020 W-4 certificate.
o 08=COLORADO
o 31=NEBRASKA
o 35=NEW MEXICO
o 38=NORTH DAKOTA
o 49=UTAH
If an employee that resides in one of these states submits a new federal 2020
W-4 withholding form indicating MS or MJ as their status, their state tax
will be MS=S00 or MJ=M00 or HH=H00. S00, M00, or H00 will be sent to Alltax
for the state exemptions. Since there are no exemptions of 00, 01, 02, etc.
on the new W-4 form, these employees will be withheld at the highest amount.
This will stay in place until these states develop their own form.
For the States that can use either state or federal exemptions, if the state
has not put out an updated form no change will be needed to the current
process based on the new 2020 W-4 certificate. We will use what is in the
system and if someone modifies federal and there is a state, we will continue
to use the state as we seem to be now. If they modify the state, we will use
the state in its existing form.
Tb
l
AD-350-
BLOCK-
NUMBER
AD-350-
BLOCK-
ACCESS-CODE
AD-350-BLOCK-ALPHA
02
5
910 HH HEAD OF HOUSEHOLD
02
5
910 MJ MARRIED OR MARRIED FILING JOINTLY
OR QUALIFYING WIDOW(ER)
02
5
910 MS SINGLE OR MARRIED FILING
SEPARATELY
02
5
910 XT EXEMPT FROM WITHHOLDING
02
5
910 NR NON-RESIDENT ALIEN
Functional Requirements Document (FRD)
Project#
39546
Project Title:
W-4 Employee Withholding Certificate
Date Prepared:
09/26/2019
Version: 11 February 2015 Page 4 of 27
o 41=OREGON
o 06=CALIFORNIA
o 40=OKLAHOMA
o 28=MISSISSIPPI
o 34=NEW JERSEY
o 50=VERMONT
o 16=IDAHO
For employees who are not under a Withholding Control Lock-In Letter, and who
do not submit a new Form W-4, you will continue to withhold as before but at
the new 2020 rates.
IRS Lock-In requirements per IRS:
o Starting in 2020, the Withholding Control Lock-In Letters
will contain the information shown below, as the payroll
processor will be instructed to initially lock-in the
employee at the “single - Form W-4, Step 2(C), Checkbox
(higher withholding rate)”.
Withholding status (filing status): Single*
Withholding rate: Form W-4, Step 2(C), Checkbox (higher
withholding rate)**
Annual reductions from withholding (Form W-4 line 3): $
0.00
Other income (Form W-4 line 4(a)): $ 0.00
Deductions (Form W-4 line 4 (b)): $ 0.00
Additional amount to withhold per paycheck (Form W-4 line
4(c)): $ 0.00
o Employees that were locked-in prior to 2020 will not be
changed automatically using the new 2020 W-4 criteria.
An employee will be able to request a modification to the
IRS lock-in determination after 1-1-2020, the
modification information provided in letter 2808c will be
the same format as shown above. (i.e. modification
example would be “Married” with Annual reductions from
withholding (Form W-4 line 3): $ XXX.XX)
o Employees that were locked-in prior to 2020 are not
required to submit a new 2020 Form W-4; however, IRS will
encourage the employee to submit a new 2020 W-4 upon
release from the Withholding Control program. In regards
to a situation where the employee does not submit a new
W-4, this is a legal question, IRS will refer to their
Office of Counsel in order to get a clear definition
based on the corresponding regulations. IRS will keep
PTRS updated as they hear back from Counsel.
o Per IRS, Lines 3, 4(a), 4(b), and 4(c) on the new 2020
Form W-4 do not have maximum dollar amount limits.
Functional Requirements Document (FRD)
Project#
39546
Project Title:
W-4 Employee Withholding Certificate
Date Prepared:
09/26/2019
Version: 11 February 2015 Page 5 of 27
o When an employee is released from the IRS Withholding
Control in 2020 a Master File Change 030 document will be
processed by the NCC to remove the “Y” on IRIS 104
(Federal Tax ) in the W-4 CONTROLLED BY IRS field to show
“N”. There will not be a need for a new W-4 to be
processed systemically, if an employee would like to
change their exemptions they will need to submit the new
W-4 based on the new changes.
Reporting Center (RC):
It was determined RC does not currently have any reports regarding
W-4. Therefore, the new W-4 fields will not be added to the PAY60BA